SH. VIJAY KUMAR AGGARWAL, PROP.,JALANDHAR vs. INCOME TAX OFFICER, JALANDHAR

ITA 38/ASR/2017Status: DisposedITAT Amritsar18 March 2019AY 2013-1423 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the payability of interest depends on the loan agreement terms, not the bank's accounting entries. Since the assessee failed to provide evidence of deferred payability, the disallowance under Section 43B(e) was upheld.

What were the facts?

The assessee debited accrued bank interest on loans classified as NPA to its profit and loss account. The Assessing Officer and CIT(A) disallowed this deduction, invoking Section 43B(e) of the Income Tax Act, as the interest was not actually paid.

What were the issues?

Whether accrued but unpaid interest on NPA accounts is disallowable under Section 43B(e) when the bank has not debited it as receivable and the assessee claims it as a business expense.

Which sections of the Income-tax Act were involved?

Section 43B(e)

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Cases cited in this judgment(13)Show list

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Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR

Before: Sh. N. S. Saini & Sh. N. K. Choudhry

For Respondent: Ms. Shivani Bansal, DR
Hearing: 21.02.2019Pronounced: 19.03.2019

Per N. S. Saini, Accountant Member:

These are the appeals filed by the assessee against the order of CIT(A)-1, Jalandhar dated 28.10.2016 for the assessment year 2013-14, dated 29.11.2016 for the assessment year 2012-13 and dated 14.12.2017 for the assessment year 2014-15. 2. At the time of hearing, the ld. AR of the assessee submitted that the facts and issue involved in all these appeal is common and therefore, he will be arguing for appeal for assessment year 2013-14 and the same arguments should be ITA Nos.38 & 77/Asr./2017 2 ITA No. 119/Asr./2018 Vijay

The order continues below.

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